Tag: student loan debt

Student Loans, Timothy Kingcade Posts

Resignation of Student Loan Watchdog Demonstrates Trump Administration’s Unwillingness to Protect Borrowers

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The recent resignation of the government’s chief watchdog of the student loan market has raised serious concern among advocates as to how the government will proceed with enforcement.  Seth Frotman, the student loan ombudsman at the Consumer Financial Protection Bureau (CFPB), resigned this week, in a letter that indicated his resignation came as a direct result of the current administration’s lack of protection for student loan borrowers.

Frotman’s letter was delivered to Mick Mulvaney, the acting director of the CFPB. In the letter, Frotman stated that his departure was a direct result of changes at the bureau, including the lack of enforcement for violations and recent protection that bad lenders have received.

The purpose of the ombudsman position is to protect the interests of student loan borrowers, a number which has now been estimated to be approximately 42 million Americans. It is also estimated that the current figure of outstanding student loan debt is $1.4 trillion.

According to the deputy director of higher education policy at New America, Clare McCann, Frotman’s resignation seemed to come from his frustration in his inability to carry out his original mission when coming onboard at the CFPB. In his letter, Frotman stated, “You have used the bureau to serve the wishes of the most powerful financial companies in America.”

The ombudsman is an important position, serving as the voice for 42 million student loan borrowers. Since 2008, the student loan ombudsman office has reimbursed over $750 million to borrowers who were victims of illegal lending practices and servicing failures.

Frotman has been the student loan ombudsman since 2016. He was key component in the current lawsuit against one of the largest student loan providers, Navient. It was the claim of the CFPB that Navient illegally cheated its borrowers from the right to lower their student loan payments.

The Navient lawsuit is still pending, and many are wondering if the company will be held responsible for its practices. If the ruling is lenient on the company, this will only further demonstrate the concerns advocates have for the direction that is being taken when it comes to representing the rights of student loan borrowers.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

 

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

More than 1 million student loan borrowers default each year

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Student loans are a problem for many Americans, but recent loan statistics show just how serious the problem is. More than one million student loan borrowers reportedly go into default on their loan obligations every year, surpassing auto loans and credit card debt.

In fact, the amount of student loan debt Americans carry has tripled in size over the last decade and is now over $1.5 trillion.

Default occurs when a borrower has not made a payment on their loans in over a year, thus triggering the debt being sent to a third-party debt collector.

Why are so many borrowers defaulting on their loans? For many of them, continuing to make the payments has become not feasible. Because of this, it is estimated that approximately 40 percent of borrowers are expected to default on their student loan obligations by the year 2023.

According to a report from the Urban Institute, a progressive Washington, D.C., think tank, within four years after graduating or leaving school, approximately one-fourth of all borrowers have defaulted.

Borrowers who end up defaulting on their loan obligations are less likely to carry some type of debt that requires a risk assessment, like a mortgage or credit card, but they are more likely to have medical bills or utility bills that end up being sent to collections. All these additional debt obligations can put added pressure on the borrower, and for this reason, many of the borrowers will put the student loan payments dead last next to other obligations.

Those who defaulted on their student loan obligations were found to live in an area where the median income was $50,000. Those who did not default on their loan obligations typically lived in areas where the average income was around $60,000.

The report further showed that the amount of the loan balance did not seem to matter. Even those who carried a small loan balance still struggled to pay off their debt.

What happens to a borrower’s loan when it goes into default?

As soon as someone’s student loan goes into default, their credit score will take a hit of approximately 60 points, dropping the average defaulter’s score to 550, which is a “poor” score. If the borrower stays current, the average credit score has been in the high 600s.

If the case ends up going into collections, the borrowers find themselves in the danger zone of receiving a judgment against them and wage garnishment. Collections judgments and wage garnishments can be extremely difficult to shake in bankruptcy cases, which can make the situation even worse if the borrower falls into a dire financial situation.

If someone finds himself or herself not able to make student loan payments, the first recommendation is to contact the student loan servicer. Many of these servicers will work with borrowers on payment plans that are capped at a monthly payment based on a percentage of the borrower’s income. The borrower can request the loan be put in forbearance, which temporarily postpones payment of the debt- however, the interest on the loan will continue to accrue. If the loans are in default, contact the loan servicer to see what can be done to get the account in good standing. The worst thing that a borrower can do is to ignore the loan payment requests.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Millennials Acquiring More Debt, Less Stuff

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Millennials are entering the workforce with more student loan debt than ever before. They may be earning more in terms of income, but a large percentage of their paychecks are dedicated to their student loan payments. After making those required monthly payments, all they have left goes towards daily living, healthcare and rent. They end up having less to spend on discretionary items, such as travel, eating out or clothing.

In fact, Americans ages 18 to 29 are spending $20 less daily than this same age group did ten years ago. The reason for this difference in spending is the amount of debt Millennials carry.

According to a recent Bankrate study, Millennials are spending more on bills and less on discretionary items than other generations. On average, Millennials spend 15 percent more than older generations on necessities, such as gas, food or other utility bills.

Here are some tips for millennials struggling with student loan debt:

  • Know what you owe.
  • Millennials who have graduated and have jobs often qualify for better rates than when they had little to no income at the start of school.
  • Get help at work. Certain companies offer student loan repayment assistance, including Fidelity, Aetna and PwC, and others.
  • Seek forgiveness. Certain professions, such as public service jobs, offer student loan forgiveness. Others include public defenders, law enforcement officers, doctors, nurses and some teachers.  For example, teachers who work in low-income school districts and teach certain subjects may qualify for complete cancellation of their student loans.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

Trump Administration Making It More Difficult for Defrauded Students to Erase Debt

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The Trump Administration has taken steps to make it harder for student loan borrowers who were defrauded by for-profit colleges or universities to erase their debt. United States Department of Education Secretary, Betsy DeVos, moved to make the process more difficult for students and roll back regulations set by the Obama administration.

The Obama administration took a particularly tough stance on for-profit colleges, creating rules that allowed similar claims against for-profit universities to be processed as a group. The Obama administration also created rules that prevented colleges from requiring students to sign an agreement that required them to arbitrate disputes with the colleges.

DeVos’s statement this week made it clear that student loan borrowers will now have to prove their claims on an individual basis and will be held personally accountable for their student loan debt – even if their decision to take out the loans was based on fraudulent information.

The U.S. Department of Education is seeking comments regarding what standard should be set for students to prove their case. The previous administration had used the “preponderance of the evidence standard” to win a case regarding their obligations. However, the Trump administration is considering going to the higher burden of proof of “clear and convincing evidence.”

The Department is hoping to publish a final rule by November 1, 2018. Any loans originating after July 1, 2019, will be affected by the new rule.

Consumer advocates have argued for a more aggressive stance against for-profit colleges. These advocates worry that this proposed rule will have a chilling effect on borrowers who seek relief from student loan debt. Borrowers would need to show that the college intended to mislead or defraud them. Proving intent on the part of the for-profit college can be nearly impossible. On top of this, a higher burden of proof would make winning their cases that much harder.

The proposed rules may also give borrowers less time to apply for relief. Students have six years from the date they discover a breach of contract to file a claim. The new rule limits that length of time to three years from when the borrower leaves school. Oddly enough, this time period coincides with the time period schools have to report how many students are not making payments on their federal student loans.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Credit, Credit Card Debt, Debt Relief, Student Loans, Timothy Kingcade Posts

More Millennials Carry Credit Card Debt than Student Loan Debt

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Student loan debt has said to have been the biggest financial burden the Millennial generation will face, but more and more individuals in this generation say they are in fact, struggling with credit card debt. In fact, credit card debt – as opposed to student loan debt – is the most prevalent type of debt among the group.  According to a recent NBC News/GenForward survey, 46 percent of U.S. adults between the ages of 18 and 34 carry credit card debt. Approximately 36 percent of them carry student loan debt. The survey reported that around three out of four Millennials carried some type of debt. More than 75 percent of those surveyed said they carried at least one type of debt, including credit cards, student loans and car loans. Only one in five Millennials reported having a mortgage debt.

One-fourth of these Millennials who carry credit card debt have balances of more than $30,000. One-fourth say that their balances are below $10,000. Around 11 percent of those in this age group surveyed have over $100,000 in debt with 22 percent of them being debt free.

The survey found that Millennials with college degrees were more likely to have credit card debt with 56 percent reported graduating with credit card debt. Forty percent who held credit card debt did not have a college degree.

When it comes to having a personal savings, 62 percent of Millennials owed more in debt than they had in a savings account. Only less than one-fourth had more in their savings account than owed in debt. Approximately one in three Millennials have less than $1,000 in savings. One-fourth of Millennials have no savings at all.

Entering the workforce with such a large amount of debt pushes young individuals to hold off on saving for the future, which leaves many of them unprepared in the event of an emergency. It also puts them at a slower start in preparing for retirement.

When asked if they would have trouble paying on an unexpected financial expense of $1,000 or more, two-thirds of them stated they would have a hard time meeting that obligation. Out of the group surveyed, those who were African-American or Latino would have the hardest time paying these obligations, although the difficulty was not exclusive to just these two groups.

If the Millennials were parents, around 48 percent of them reported that they would have a great deal of trouble in the event a financial crisis; for example, a job loss or medical emergency. Of the Millennials who did not have children, 39 percent of them reported this fact.

Credit card debt and student loan debt have caused a number of Millennials to postpone major life events like starting a family, purchasing a home and saving for retirement.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

 

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Borrowers Seeing Some Relief from Bankruptcy Judges

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Student loan borrowers are beginning to see some relief in bankruptcy court when it comes to discharging student loan debt. At the start of 2018, the Department released a statement that it was reviewing student loan bankruptcy laws with respect to how difficult it has been for borrowers to receive a discharge of their student loan debt in bankruptcy. Following this statement, some bankruptcy court judges have lessened the standards borrowers are held to when deciding on whether the loan obligation should be discharged.

Since the statement was made by the Department and subsequent request for comments on the current policy, no updates have been given as to whether the Department would be making official policy changes. In the meantime, bankruptcy court judges seemed to have taken a cue from the Department and are now making rulings to make loan repayment terms easier on borrowers for the meantime.

A recent Wall Street Journal report found that judges were more becoming more lenient when dealing with individuals saddled with student loans. Current college graduates are now entering the workforce with well over six figures in student loan debt. Unless these graduates land a job making an income that is comparable to this debt, these individuals soon find themselves unable to make student loan payments. Bankruptcy is meant to provide individuals drowning in debt with a way out, but the current policy with respect to student loan debt has dictated that this obligation stays with the debtor even after a bankruptcy discharge of all other debts.

The study looked at 50 current and former bankruptcy court judges, reviewing bankruptcy cases where the filer had student loan debt. The study showed that a number of the judges were very sympathetic to the cause of the individuals in front of them who were not able to pay their current student loan debt obligations. In fact, many of them understood the struggle all too well with student loan debt since they may also carry debt from law school, or they may be influenced by the struggles they see with their law clerks finishing or graduating from law school. It is estimated that the average lawyer holds just under $120,000 in student loan debt.

These judges are required to follow the legal standard that a borrower must pass the “undue hardship test,” which has traditionally been a strict standard. It has also been a standard that has never been clearly defined by bankruptcy law and has been applied inconsistently from court to court.

Congress has never given a clear definition for what undue hardship consists of, but many courts have used the “Brunner” test to determine what this means.

The Brunner test requires that the borrower show that he or she has made a good faith effort in repaying the debt, that the financial circumstance is such that the person cannot have a reasonable standard of living if he or she has to repay the debt, and this financial situation is likely to continue in the future.

Even though the judges’ hands may be tied by the legal standard, they may seek other, more creative solutions to help the borrowers ease their burdens. They may not be able to completely cancel the debt in all situations, but they have tried to help alleviate some of that burden. In some cases, however, some of the more sympathetic judges have completely cancelled the borrower’s past due debt obligation.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Related Resources:

https://studentloans.net/bankruptcy-judges-taking-it-easy-on-some-student-loan-borrowers/

https://lendedu.com/news/some-judges-push-to-ease-bankruptcy-rules-for-student-loan-debt/

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Student Loans, Timothy Kingcade Posts

U.S. Consumer Debt Increases in the Month of May

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Recent data shows that U.S. consumer debt rose in the month of May by the most it had in the last six months, showing that Americans were more confident in their spending habits halfway through the second quarter.  The increase was seen in revolving debt, which includes credit card debt along with non-revolving debt like student loan debt and auto loans.

As of May 2018, Americans owe more than 26 percent of their income on consumer debt, up from 22 percent in 2010. That means Americans are on track to accumulate $4 trillion collectively in consumer debt by the end of this year. Americans have been accumulating more debt, particularly over the last two years, where consumer credit has grown at a rate of 5 to 6 percent annually.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

Judges Would Not Consider Forgiving Student Loan Debt until Now

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Bankruptcy judges have traditionally refused to forgive student loans as part of the bankruptcy process, no matter how severe the debt may be for the borrower. However, this mindset is slowly beginning to change as some judges are beginning to give some relief to borrowers who are drowning in student loan debt.

According to the Wall Street Journal, more than 50 current and former bankruptcy judges have been reported as being frustrated with the lack of relief they see borrowers receiving when it comes to student loan debt. These individuals come into bankruptcy with six-figure student loan balances but are oftentimes turned away due to lack of resources or the legal ability to help these borrowers.

Once such bankruptcy judge is U.S. Bankruptcy Court Judge John Waites from South Carolina who has expressed the belief that if the law is not going to change, it is up to the courts to offer that help.

It is reported that approximately 45 million individuals carry some form of student loan debt in the United States. The amount of this debt has jumped to $1.4 trillion, and the majority of this debt is backed by the federal government. Student loan debt has surpassed credit cards as the largest source of consumer debt, following mortgages. However, the problem is that most other forms of debt can be liquidated in bankruptcy. For years, the legal standard has made student loan debt essentially untouchable.

The current Presidential Administration is reviewing whether to fight the requests to cancel student loan debt through bankruptcy less aggressively than they have in the past.  However, until that happens, bankruptcy lawyers are noticing that judges are being more lenient when these requests are made in court.

The latest review was done in 2017 and involved judges’ ruling on student loan debt 16 times. Out of these cases, 12 of them ended with the judges preserving the debt with only three canceling. In one case, the borrower was granted partial relief.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

 

Bankruptcy Law, Debt Relief, Student Loans

Income-Based Repayment Plans – The Pros & Cons

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Many individuals struggle to make their student loan payments, and for those borrowers facing six figures in student loan debt, that one monthly payment can be an overwhelming burden.

However, what happens when a borrower is facing over a million dollars in student loan debt?

For one orthodontist featured in a recent Wall Street Journal article, this was his reality. He owed $1,060,945.42 in student loans, with the interest accruing at a rate of $130 daily, which also comes to $3,900 monthly or $46,800 annually.

His income in 2017 was $225,000, and he is paying his student loans back under a federal government income-based repayment (IBR) program. It can seem hardly fathomable that a man of his income level would qualify for such a program. His monthly student loan payment is $1,600. At this rate, he is not making much of a dent on the interest accruing, and it is likely he will stay on his IBR program for the 25-year period allowed. However, after that time, even though he has made barely a dent in the total balance, his student loans will be forgiven with the negative income tax consequences following, of course.

Only 101 of approximately 41 million student loan borrowers owe that much in student loan debt, but for certain career fields, like medical  or law, these debts can quickly add up to $500,000 easily.

The average law student debt varies depending on the school location and any discounts offered in the tuition for the student. However, taking the tuition, costs, and living expenses into account, a law student can come out with $200,000 plus in student loan debt. The law graduate’s dream is to land that high paying firm job, but most end up starting at a salary between $40,000 and $65,000. It is easy to see how someone can become stuck on an income-based program by paying the minimum monthly on a relatively small salary compared to what is owed.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Understanding the Deceptive Practices of Student Loan Companies

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Over 44 million Americans are finding themselves in over their heads when it comes to student loan debt. It can be hard to see an end in sight when facing six figures of student loan debt following graduation, but for many, student loans are almost considered a “given” if someone wants to pursue a higher education.  Private student loan companies are now trying to make it even more enticing to take out more money to cover these costs.

In the grand scheme of things, government loans still constitute the majority of what is borrowed. Currently, private student loans account for less than 10 percent of all student loan debt, which is a relatively small percentage.

Private lenders have been hoping for this to change and have been actively lobbying for legislation that would lessen the restrictions the government has on student loans, specifically when it comes to graduate students.

This legislation, known as the Prosper Act, was written and proposed by Republican lawmakers last year. It caps the amount of federal student aid graduate students can receive. This cap on federal aid leaves a gap between what the students are able to borrow and how much tuition costs. Concerns have been expressed that students will have no choice but to seek private loan options to pay for the remainder of these costs not covered by government aid.

The next step is for these private loan companies to make their product more appealing to borrowers. What better way to do this than by making friends with the borrowers themselves? Many of these companies, in fact, are now making their product seem more like they are a lifestyle company than a lender.

One such company, Laurel Road, has partnered with MoviePass, a movie theater subscription service. The company has announced that if an individual refinances his or her student loans with Laurel Road, that person will be eligible for one year’s subscription.

Another private lender, Social Finance, Inc. (SoFi) has made small changes to its branding by changing how it refers to its borrowers. Instead of “customers,” these individuals are now referred to as “members.” It may seem like a small change, but this difference in designation also includes invitations to exclusive “member only” events, like cocktail parties and cooking classes. SoFi brands itself as more of a social club than what it actually is– a private financial institution. In 2017, SoFi offered 323 nationwide member events for its over 14,000 “members.” The company also offers an app that allows its members who meet at events to communicate to each other through the app.

The Laurel Road partnership is just one example of private lending companies trying to rebrand student loan debt as something more “fun.” The problem is further compounded when these loan companies do very little to educate their borrowers on the terms of the loans. When borrowers fail to pay back the debt as it becomes due, many of these lenders have been accused of illegally harassing their customers.  Borrowers have become so desperate to pay back their debts, in fact, that some have even resorted to game show antics to find a way out. Recently, a new game show called “Paid Off with Michael Torpey” has offered student borrowers a chance to compete on TV with the prize being having their student debt paid off. The series is premiering on TruTV in July 2018. Many have criticized this new program, saying it trivializes a very serious, growing problem.  However, it does demonstrate what lengths borrowers will go to in order to get some relief from their crippling debt.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.